Iím looking at getting into Real Estate Investing to buy and hold rental properties to generate income. Iíve started reading to learn as much as possible, and have been doing some neophyte calculations, when I stumbled across this:

Even at the asking price, isnít this a great income generator, and even better if I could knock off 10-15,000 off the price? What are the pitfalls I am probably overlooking? Any insight is appreciated!!

From your figures I see there are several things you are not taking into consideration with this investment.

Vacancy, repairs, any maint. (lawn service, pest control) or utilities that must be provided by the landlord, can add up quickly. These things can bring that 700 per month down to nothing fast.

Look at the history of this property for vacancy #'s to use, find out if it is metered seperately or if you are responsible for water or garbage, look at past repairs as listed on present owners tax returns to get a possible idea for how much is normally spent on repair. Inspect the building closely for any defferred maint. issues. These are repairs that will have to be made soon by YOU if you buy.

Not trying to discourage you at all, this looks like it could turn out to be something, there are just many factors to look at especially on multiunits.